DLF Sales Got Momentum with The Launch Portfolio

The sales graph of the real estate giant, DLF sends waves of joy as the pre-sales or booking in the quarter of July to September of 2023 increased by 9 percent as compared to the last year. The sales for this quarter closed at Rs. 2,228 crores.

The developer finds it astonishing because there were no significant launches but still the performance was above estimation and the experts conclude that it was largely driven by the momentum in the existing portfolio.

However, DLF launched projects in the second quarter in an area of 0.2 million square feet which entailed a sales potential of Rs.440 crore. It estimates the target for the current financial year, 2024, is 11.2 million square feet with a sales potential of Rs.19,700 crore. It also includes its flagship project DLF Privana.

The company has the inventory available worth Rs.4,244 crore which they plan to couple with the inventory to launch in FY24. This should help the company to meet its booking target of Rs.13000 crore. The majority of sales in the same quarter were possible because of the DLF Privana project which alone has a booking of Rs.720 crore,

New launches witnessed sales of Rs.1,340 crore out of which the share of projects launched in the September 2023 quarter was about Rs.350 crore. As mentioned by Abhishek Khanna and Muruza Arsiwalla from Kotak Institutional Equities – DLF has successfully capitalized on the rising demand trend for real estate property in Gurgaon. They made it possible by offering a wide array of products at different price points and regular intervals. The developer also mentioned that the launch of Rs.19,700 crore inventory in financial year 2024 will also support the pre-sales which has been estimated at Rs.16,200 crore. They showed positivity because the brokerage is optimistic about the stock and has an added rating.

Considering the healthy sales and collections, the cash flow from the operations was seen at record high levels of Rs.2,360 crore. The development section took the benefits of this cash flow and turned the gross debt of Rs.3,012 crore into net cash positivity at Rs.142 crore at the end of the quarter. DLF Privana is also receiving healthy demand from buyers adding to the profits of the real estate giant.

The Facts of Commercial Real Estate Projects

This is also worth mentioning that the income from the rental portfolio was also up by 9 percent which reached Rs.1,069 crore. This growth has the biggest share of the retail segment which showed a sales growth of 15 percent. On the other hand, the revenues of the office portfolio grew by 7 percent. The company has an expansive operational portfolio of Rs.39.7 million square feet.

The company calculated the overall occupancy levels for the rental business which stood at 92 percent as compared to 88 percent. This comparison was led by the office occupancy that has 300 basis points sequentially to 91 percent. Overall, retail occupancy stood at 98 percent.

What Market Research Says About the Sales Graph Of DLF

Looking at the facts and details the Motilal Oswal Research says that the rental business is expected to register an annual growth of 13 percent over the financial years 2023 and 2024 to Rs.5,100 crore. The brokerage is very optimistic and expects the growth trajectory to remain steady for the next 12 to 15 years at least. They are very positive about the 24 million square feet development potential in the assets existing today. The developer is also positive about the sales of the units in DLF Privana as it has become the most sought-after residential project in Gurgaon.

About DLF

DLF is one of the leading real estate developers in Gurgaon and has a strong presence in other 12 states in the country. It has many ready-to-move and under-construction projects in Gurgaon. All of the residential and commercial projects of DLF are receiving huge demand because of the strategic location, infrastructure in the surroundings, and the construction quality. The developer boasts of developing many luxurious residential projects like DLF Privana with meticulous architecture, stunning designs, and state-of-the-art technology.